Keppel Ltd. announced a programme to progressively monetise up to 10 legacy rigs through a new private fund, Keppel Offshore Fund, which is managed by Keppel. Keppel said an indirect subsidiary and funds, accounts and entities managed by Apollo have agreed to subscribe for limited partnership interests in the fund.
According to Keppel, through Rigco Holding Pte. Ltd., it will divest six operational rigs in 2026 to the fund for a total of approximately S$1.2 billion and expects to receive cash consideration of about US$478 million, approximately S$611 million, in 2026. Keppel also said the fund’s acquisition of the six rigs will be by cash from Apollo, while Keppel will make 50% of the contributions to acquire the six operational rigs through contribution in kind, subject to certain conditions.
Keppel said it intends to progressively complete and may divest four additional rigs, which are in various stages of completion, to the fund from 2027 to 2028, subject to certain conditions being met. The company said this could generate approximately US$988 million, approximately S$1.3 billion, in aggregate cash proceeds, and that construction of the four legacy rigs would be funded using existing cash retained in RigCo.
Keppel said the divestment of the six operational rigs will contribute about S$1.2 billion toward its announced asset monetisation for 2026 and increase the company’s Funds under Management by approximately S$3.9 billion. It also said that, subject to closing conditions, it will earn certain advisory fees and recurring management fees as investment manager of the fund, as well as a share of distributions from its stake in the fund.
Keppel said it will recognise an accounting loss of approximately S$92 million from the six operational rigs being divested to the fund in its 1H 2026 results. The company also said the final three of the 13 legacy rigs are not part of this transaction and it will explore various options for their monetisation.
In the annex, Keppel listed the six operational rigs as AD 110, AD 120, ADM 683, ADM 684, ADM 685 and ADM 686. The four uncompleted rigs were listed as Jasper, Can Do, Nordic Winter and Nordic Spring, while DRU 1, DRU 2 and Sapura Raiqa were listed as not part of the transaction.
Source note
Read the official announcement for the underlying details.